How much did he have in the rrsp at the end of time period

Assignment Help Finance Basics

Reference no: EM133926379

Problem

Patrick had a balance of $2,500 in his RRSP. In addition to this, he invested $600 at the end of every 3 months for 6 years. His RRSP earned 4.00% compounded quarterly for the first 2 years and 7.10% compounded quarterly for the rest of the period.

1) What is the accumulated value of the balance of $2,500 at the end of the time period?

2) What is the accumulated value of the annuity at the end of the first 2 years? Get the instant assignment help.

3) What is the future value of the accumulated value from (2) at the end of the 6 years?

4) What is the accumulated value of the $600.00 annuity for the next 4 years at 7.10% compounded quarterly?

5) How much did he have in the RRSP at the end of the time period?

6) What were his total earnings?

Reference no: EM133926379

Questions Cloud

Calculate the maximum mortgage amount he will receive : Olivia planned to take a mortgage to purchase a house but could only afford to pay a maximum amount. Calculate the maximum mortgage amount he will receive.

What is the amortization period for the mortgage : A $335,000 mortgage at 4.80% compounded semi-annually was settled with monthly payments of $2,575. What is the amortization period for the mortgage?

Calculate the principal balance at end of three year term : Calculate the principal balance at the end of the 3 year term. Calculate the monthly payment amount if the mortgage was renewed for another 3 years at 4.42%.

How many payments are there in the annuity : Evan receives $3,400 from an investment at the beginning of every quarter for 7 years and 9 months at 4.40%. How many payments are there in this annuity?

How much did he have in the rrsp at the end of time period : What is the accumulated value of the annuity at the end of the first 2 years? How much did he have in the RRSP at the end of the time period?

Explain the risk avoidance method and the tools : Explain the risk avoidance method and the tools that you would consider as part of your risk management strategy.

What is the sharpe ratio : A portfoilio has an average return of 10.5%, a standard deviation of 14.3% and a beta of 1.45. The risk-free rate is 2.3%. What is the Sharpe ratio?

What is the likely level of its long-term financing : If the firm follows a maturity matching or moderate working capital financing policy, what is the likely level of its long-term financing?

What might be three benefits of offering such settlement : From VSB's point of view, what might be three benefits of offering such settlement discounts to its customers?

User Account

All Pages